- Revenue Growth: Achieved $490 million in revenue, a 14.9% increase YoY, with a net-to-gross ratio of 89%.
- Backlog Expansion: Record backlog of $479 million as of 12/31/2025, a 20% increase from prior year, driven by power and utilities sector growth.
- Margin Improvement: Gross margin rose to 55% in the quarter (up 190 bps YoY) and 53.4% for the full year (up 120 bps YoY).
- Cash Flow Strength: Full-year operating cash flow surged 50% to $35.8 million from $24.3 million in 2024.
- 2026 Guidance: Raised revenue target to $495–$510 million and adjusted EBITDA margin to 17–17.5%, with 70–80% backlog conversion expected this year.
Segment Performance and Growth Drivers
The company's power and utilities segment was a significant contributor to the growth, with the backlog in this segment increasing substantially. Dan Swayze, Chief Operating Officer, noted that the company is winning in markets where technical depth, geographical reach, and integrated end-to-end ability create a competitive advantage. The acquisition of RPT is expected to drive growth in the midstream movement of natural gas, and the integration is ahead of schedule.
Guidance and Outlook
The company updated its full-year 2026 guidance to a range of $495,000,000 to $510,000,000, representing a revenue growth of around 8.7% at the midpoint, slightly lower than the 14.9% growth achieved in 2025. The adjusted EBITDA margin is expected to be between 17% and 17.5%. Analysts expect the company's revenue growth to be driven by its power, natural resources, and transportation segments.
Valuation and Return Metrics
With a P/E Ratio of 38.48 and an EV/EBITDA of 13.86, the company's valuation appears to be reflecting its strong growth prospects. The Return on Equity (ROE) of 4.94% and Return on Invested Capital (ROIC) of 4.58% indicate a decent return on capital, although not exceptionally high. The Net Debt / EBITDA ratio of 2.92x suggests a moderate level of leverage. The Free Cash Flow Yield of 6.57% is attractive, indicating a potential source of return for investors.
Investment Implications
Bowman Consulting Group Ltd.'s strong financial performance, driven by its diversified service offerings and strategic acquisitions, positions it well for continued growth. While the valuation multiples are relatively high, they appear to be justified by the company's growth prospects and improving operational efficiency. Investors should monitor the company's ability to execute on its backlog and deliver on its guidance.